University of Alaska July 2010 - June 2012 Demographics Demographics - Overview The University of Alaska has fewer men than the norm with a greater male and female concentration from ages 40 – 59 (36% compared to norm of 31%) Overall age/gender factor of 1.13 and based on age/gender mix we would anticipate the University to be 13% more costly Employee age/gender factor of 1.37 compared to the norm of 1.17, and increased from the previous Fiscal Year Spouse age/gender factor of 1.42 compared to the norm of 1.34, and increased from the previous Fiscal Year Employees drove 45% of the plan costs and were 43% of the population Spouses drove 40% of the plan costs and were 25% of the population Dependents drove 15% of the plan costs and were 32% of the population 10% of the University’s population has 3 or more chronic conditions with the norm at 8% University’s PMPY cost for these members is $17,331 compared to norm of $14,558 Approximately 69% of the current members have been enrolled in the medical plan for 3 or more years and 80% more than 2 years 2 Demographics – Total Members Length of Enrollment (For Current Members) Members by Gender 100% 866 9% 1,071 11% 75% 12 - 23 months 1,068 11% 6,579 69% 47.4% 47.6% 51.3% 52.6% 52.4% 48.7% 2010-2011 2011-2012 Norm Less than 12 months 50% 24 - 35 months 36 months 25% 0% Female Norm from Lockton InfoLock Book of Business. Male 3 Demographics - Total Members Member Percentage by Relationship 100% PMPY Paid by Relationship $9,000 30% 32% $8,000 35% 75% $7,000 $6,000 26% 50% 25% 20% $5,000 $4,000 $2,098 $5,640 $4,178 $1,000 $2,049 $2,000 $5,774 45% $6,493 43% $2,849 44% $7,125 25% $8,441 $3,000 $- 0% 2010-2011 Employee 2011-2012 Norm Spouse Dependent 2010-2011 Employee Norm from Lockton InfoLock Book of Business. 2011-2012 Spouse Norm Dependent 4 Health Cost Analysis Medical Financial Analysis Overview Inpatient average allowed per admission decreased 19.4% from $30,111 to $24,263 and the average length of stay decreased from 6.6 days to 4.4 days Decrease in the severity of inpatient claims due to shorter stays Preventive office visits per 1,000 decreased 10.5% from 454 to 406 Emergency Room visits per 1,000 decreased from 176 to 172 and the cost per visit decreased Non-emergent like condition ER visits increased from 7% to 14% Members with 3 plus ER visits accounted for 10.3% of all ER visits. This was 7.4% in the last InfoLock report from 7/10-6/11. 28 members with 4 ER visits (38% on weekends) 46 members with 5+ ER visits (30% on weekends) 6 Utilization Summary Apr 10 Mar 11 Apr 11 Mar 12 % Change Norm Inpatient IP Days/1000 353 221 -37.4% 305 53 50 -6.7% 69 $30,111 $24,263 -19.4% $18,303 6.6 4.4 -32.9% 4.4 $4,549 $5,459 20.0% $4,158 176 172 -2.4% 232 $2,622 $2,429 -7.4% $1,751 4,391 3,812 -13.2% 4,000 Behavior Health Visits/1000 669 606 -9.3% 402 Preventive Visits/1000 454 406 -10.5% 470 $461 $471 2.1% $263 9,372 7,900 -15.7% 9,786 $211 $258 22.3% $245 $31 $38 21.5% $29 65% 69% 5.8% 74% MRIs/1000 74 72 -1.9% 71 CT Scans/1000 69 46 -33.6% 67 Admissions/1000 Average Allowed per Admission Average Length of Stay Average Allowed per Day Outpatient ER Visits/1000 Average Allowed per ER Visit All Office Visits/1000 Average Allowed per Office Visit (includes ancillary) Prescription Drugs Prescriptions/1000 Average Allowed per Brand Script Average Allowed per Generic Script % Generic Scripts Imaging Utilization is provided on an incurred basis and lagged three months. Norm from Lockton InfoLock Book of Business. 7 Claim Expense Distribution Jul 10 - Jun 11 Paid Amount Range Members Count % Jul 11 - Jun 12 Plan Payment Amount % Members Count % Norm Plan Payment Amount Plan Members Payment % % % $0 or less 1,915 17.7% -$90,078 -0.1% 2,740 25.0% -$50,734 -0.1% 29.7% -0.3% $1 - $1,999 4,996 46.1% $3,426,502 5.4% 4,760 43.4% $3,220,703 6.1% 49.2% 10.3% $2,000 - $4,999 1,683 15.5% $5,378,886 8.5% 1,481 13.5% $4,881,353 9.2% 10.5% 12.4% $5,000 - $24,999 1,741 16.1% $19,319,663 30.7% 1,551 14.1% $16,337,449 31.0% 8.8% 33.5% $25,000 - $49,999 321 3.0% $10,881,166 17.3% 262 2.4% $9,034,638 17.1% 1.1% 13.7% $50,000 - $74,999 84 0.8% $5,196,828 8.3% 82 0.7% $5,011,974 9.5% 0.3% 7.1% $75,000 - $99,999 36 0.3% $3,082,142 4.9% 31 0.3% $2,623,947 5.0% 0.1% 4.5% $100,000 - $149,999 28 0.3% $3,318,058 5.3% 36 0.3% $4,482,502 8.5% 0.1% 5.7% $150,000 + 39 0.4% $12,430,278 19.7% 32 0.3% $7,236,342 13.7% 0.1% 13.1% 187 1.7% $24,027,305 38.2% 181 1.6% $19,354,765 36.7% 0.7% 30.4% Members > $50,000 All Members 10,843 100.0% $62,943,445 100.0% 10,975 100.0% $52,778,174 100.0% 100.0% 100.0% Includes members who were enrolled or had a claim paid during the time period. 0.3% of members drove 13.7% of the University’s costs 1.6% of members (181) drove 36.7% of the University’s costs Norm from Lockton InfoLock Book of Business. 8 Emergency Room Demographics ER Visits by Number of Visits 2010-2011 Visits per Member # of Members % on Weekends 2011-2012 % # of % on % Dependents Members Weekends Dependents 1 1,086 32% 31% 977 31% 36% 2 275 29% 31% 226 33% 34% 3 83 33% 16% 64 25% 25% 4 23 46% 39% 28 38% 36% 5+ 37 31% 22% 46 30% 22% ER Visits by Relationship 100% 28% 33% 28% 26% 44% 41% 2010-2011 2011-2012 75% 50% 25% 0% Employees Spouses Dependents 9 Emergency Room Utilization Emergency Room Visit by Top 20 Diagnosis Groups Jul 11 - Jun 12 ER Visits by Type Primary Diagnosis Group 20% 14% Headache 99 $216,144 Chest Pain 77 $184,965 2 $170,380 Respiratory Failure Potential Non Emergent Neurotic and Personality Disorders 21 $165,578 Other Pain, not elsewhere classified 79 $165,577 Abdominal Pain 115 $163,550 Misc Wounds and Injuries 197 $123,246 Misc Symptoms 193 $105,846 Depression 24 $104,638 Limb Fractures 63 $93,519 Stroke and TIA 7 $89,243 Musculoskeletal Disorders 99 $83,557 Nausea and Vomiting 44 $83,368 132 $78,286 Urinary Stones 27 $71,713 Pregnancy Complications 62 $70,405 Complicated Limb Fractures 11 $69,010 Dysrhythmias 19 $66,024 Gall Bladder Diseases 11 $63,799 9 $62,081 912 2,203 $1,222,076 $3,453,006 Injury and Potential Non Emergent Visits per 1000 by Service Date 80 70 60 50 40 30 20 10 0 ENT and Upper Resp Disorders 12/1/2011 11/1/2011 10/1/2011 9/1/2011 8/1/2011 7/1/2011 6/1/2011 5/1/2011 4/1/2011 3/1/2011 2/1/2011 1/1/2011 12/1/2010 11/1/2010 10/1/2010 9/1/2010 8/1/2010 7/1/2010 6/1/2010 5/1/2010 Affective Disorders except Depression 4/1/2010 Paid Amount Injury 66% ER Visits per 1000 Visits All Others Total Service Date Injury Non-Emergent 10 Prescription Drug Analysis Pharmacy Financial Analysis Overview Generic usage increased from 65% to 69% Estimated savings of $300,000 to $370,000 For each 1% increase in generic usage the pharmacy plan costs should decrease 1% Nexium per script usage decreased from 1,101 to 680 with Omeprazole scripts decreasing from 1,023 to 987 Lipitor per script usage decreased from 2,257 to 913 with Simvastatin scripts decreasing from 1,269 to 1,037 and Atorvastatin Calcium at 863 Crestor decreased from 855 to 642 Potential savings of $95,313, if 50% of cholesterol scripts moved to Simvastatin Potential savings of $80,221, if 50% of PPI scripts moved to Omeprazole Humira’s total Rx spend was $249,762 (3% of total University pharmacy spend) and Enbrel’s total Rx spend was $101,716 (1% of total University pharmacy spend) 12 Brand versus Generic Analysis Brand and Generic Drugs by Scripts and Plan Paid 100% 21.4% 80% 60% 65.3% 69.1% 40% 20% 78.6% 34.7% 21.2% 24.5% 74.5% 78.8% 75.5% 30.9% 25.5% 0% Scripts Plan Paid Jul 10 - Jun 11 Scripts Plan Paid Scripts Jul 11 - Jun 12 Brand Plan Paid Norm Generic Cost per Script $300 $250 $258 $245 $211 $200 $150 $100 $50 $31 $38 $29 $0 Jul 10 - Jun 11 Average Allowed per Brand Script Jul 11 - Jun 12 Norm Average Allowed per Generic Script Norm from Lockton InfoLock Book of Business. 13 Prescription Drugs - Top 20 Drugs by Paid Amount Jul 10 - Jun 11 Drug Name HUMIRA SINGULAIR NEXIUM COPAXONE LIPITOR CYMBALTA ADVAIR DISKUS ABILIFY CRESTOR ATORVASTATIN CALCIUM ENBREL ONE TOUCH ULTRA TEST LEXAPRO REBIF CELEBREX GLEEVEC LOVAZA VALACYCLOVIR RESTASIS ZYTIGA Top 20 Drugs All Others Total Brand/ Generic Brand Brand Brand Brand Brand Brand Brand Brand Brand Generic Brand Brand Brand Brand Brand Brand Brand Generic Brand Brand Therapeutic Class Disease-modifying Antirheumatic Agents Leukotriene Modifiers Proton-pump Inhibitors Biologic Response Modifiers HMG-CoA Reductase Inhibitors Selective Serotonin- and Norepinephrine-reuptake Selective beta-2-Adrenergic Agonists Atypical Antipsychotics HMG-CoA Reductase Inhibitors HMG-CoA Reductase Inhibitors Disease-modifying Antirheumatic Agents Diabetes Mellitus Selective Serotonin-reuptake Inhibitors Biologic Response Modifiers Cyclooxygenase-2 (COX-2) Inhibitors Antineoplastic Agents Antilipemic Agents, Miscellaneous Nucleosides and Nucleotides EENT Anti-inflammatory Agents, Misc Antineoplastic Agents Paid Paid PMPM Scripts Jul 11 - Jun 12 Cost per Script Paid Paid PMPM Scripts Cost per Script $229,096 $153,735 $256,901 $158,976 $337,401 $111,428 $133,035 $104,055 $122,322 $0 $109,285 $86,265 $120,110 $112,457 $71,843 $0 $68,526 $73,449 $54,534 $0 $2,303,416 $1.96 $1.32 $2.20 $1.36 $2.89 $0.96 $1.14 $0.89 $1.05 $0.00 $0.94 $0.74 $1.03 $0.96 $0.62 $0.00 $0.59 $0.63 $0.47 $0.00 $19.74 117 1,012 1,101 48 2,257 634 579 176 855 64 479 1,083 41 442 349 645 178 10,060 $1,958 $152 $233 $3,312 $149 $176 $230 $591 $143 $0 $1,708 $180 $111 $2,743 $163 $0 $196 $114 $306 $0 $229 $249,762 $194,131 $179,464 $177,683 $162,725 $131,313 $127,163 $119,003 $116,811 $102,893 $101,716 $90,468 $83,810 $83,366 $77,044 $70,024 $65,967 $65,937 $64,469 $63,960 $2,327,709 $1.94 $1.51 $1.39 $1.38 $1.26 $1.02 $0.99 $0.92 $0.91 $0.80 $0.79 $0.70 $0.65 $0.65 $0.60 $0.54 $0.51 $0.51 $0.50 $0.50 $18.08 125 979 680 47 913 535 452 177 642 863 55 451 664 26 388 13 265 644 187 12 8,118 $1,998 $198 $264 $3,780 $178 $245 $281 $672 $182 $119 $1,849 $201 $126 $3,206 $199 $5,386 $249 $102 $345 $5,330 $287 $5,100,551 $43.71 81,555 $63 $5,191,329 $40.32 73,999 $70 $7,403,967 $63.46 91,615 $81 $7,519,038 $58.40 82,117 $92 14 Prescription Drugs - Top 20 Drugs by Script Count Jul 10 - Jun 11 Drug Name HYDROCODONE-ACETAMINOPHEN LISINOPRIL SYNTHROID LEVOTHYROXINE SODIUM ZOLPIDEM TARTRATE HYDROCHLOROTHIAZIDE SIMVASTATIN OMEPRAZOLE SINGULAIR AZITHROMYCIN LIPITOR METFORMIN HCL ATORVASTATIN CALCIUM AMOXICILLIN BUPROPION XL SERTRALINE HCL ALPRAZOLAM FLUOXETINE HCL AMLODIPINE BESYLATE NEXIUM Top 20 Drugs All Others Total Brand/ Generic Generic Generic Brand Generic Generic Generic Generic Generic Brand Generic Brand Generic Generic Generic Generic Generic Generic Generic Generic Brand Therapeutic Class Opiate Agonists Angiotensin-Converting Enzyme Inhibitors Thyroid Agents Thyroid Agents Anxiolytics, Sedatives, & Hypnotics Misc Thiazide Diuretics HMG-CoA Reductase Inhibitors Proton-pump Inhibitors Leukotriene Modifiers Other Macrolides HMG-CoA Reductase Inhibitors Biguanides HMG-CoA Reductase Inhibitors Aminopenicillins Miscellaneous Antidepressants Selective Serotonin-reuptake Inhibitors Benzodiazepines Selective Serotonin-reuptake Inhibitors Dihydropyridines Proton-pump Inhibitors Paid Paid PMPM Scripts Jul 11 - Jun 12 Cost per Script Paid Paid PMPM Scripts Cost per Script $10,356 $9,888 $1,940 $665 $23,734 $786 $40,661 $43,143 $153,735 $20,978 $337,401 $11,179 $0 $1,679 $60,589 $16,587 $1,166 $8,864 $12,747 $256,901 $1,012,997 $0.09 $0.08 $0.02 $0.01 $0.20 $0.01 $0.35 $0.37 $1.32 $0.18 $2.89 $0.10 $0.00 $0.01 $0.52 $0.14 $0.01 $0.08 $0.11 $2.20 $8.68 2,416 2,029 1,301 1,280 1,162 1,308 1,269 1,023 1,012 1,234 2,257 964 943 926 818 709 721 807 1,101 23,280 $4 $5 $1 $1 $20 $1 $32 $42 $152 $17 $149 $12 $0 $2 $65 $20 $2 $12 $16 $233 $44 $12,418 $13,221 $1,738 $669 $25,410 $1,128 $46,316 $51,952 $194,131 $16,080 $162,725 $14,541 $102,893 $1,348 $52,155 $14,686 $2,051 $11,686 $11,489 $179,464 $916,099 $0.10 $0.10 $0.01 $0.01 $0.20 $0.01 $0.36 $0.40 $1.51 $0.12 $1.26 $0.11 $0.80 $0.01 $0.41 $0.11 $0.02 $0.09 $0.09 $1.39 $7.12 2,150 1,917 1,275 1,094 1,078 1,069 1,037 987 979 957 913 887 863 848 846 834 738 732 705 680 20,589 $6 $7 $1 $1 $24 $1 $45 $53 $198 $17 $178 $16 $119 $2 $62 $18 $3 $16 $16 $264 $44 $6,390,969 $54.77 68,335 $94 $6,602,939 $51.29 61,528 $107 $7,403,967 $63.46 91,615 $81 $7,519,038 $58.40 82,117 $92 15 Current Member Chronic Condition Analysis • • Members included in this section were active plan participants as of the last month of the reporting cycle and enrolled for more than three months. Retirees and COBRA members are excluded from this section. Each individual member is assigned a relative risk score indicating disease burden and a care gap score quantifying appropriate medical care. Depending upon the prevalence of disease and the extent of gaps in medical care, the population is stratified into low, moderate, and high risk for disease burden, and compliant or non-compliant for disease management. Chronic Conditions per Member Chronic Conditions per Member 65% 70% 60% Paid Amount by Number of Chronic Conditions 57% 16% 50% 40% 30% 20% 20% 18% 13% 10% 9% 10% 8% 0% Members with 0 conditions Members with 1 condition Actual Members with 2 Members with 3 or conditions more conditions Norm 84% No Chronic Conditions PMPY by Number of Chronic Conditions $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- 1 or more condition $17,331 $14,558 $7,306 $6,649 $5,984 $4,217 $1,364 $1,326 Members with 0 Members with 1 Members with 2 Members with 3 conditions condition conditions or more conditions Actual Norm 17 Top 5 Chronic Conditions Chronic Conditions per Member Back Pain 1302 Neck Pain 656 305 Hypertension 380 186 187 71 Depression 384 195 176 59 Hyperlipidemia 318 0 177 153 500 255 524 440 139 87 Low Risk Moderate Risk High Risk High Cost Claimant 49 1000 1500 2000 2500 3000 18 Cost of Non-Compliance PMPY Costs by Chronic Conditions 555 198 $10,305 $8,878 $5,385 528 120 $4,904 $7,104 $7,316 $8,114 59 334 $5,471 $5,271 $7,907 $8,347 $7,491 $5,674 $5,007 $6,021 $6,000 $6,432 $8,501 $8,000 $8,951 $10,000 $9,262 $11,286 $11,538 Prevent heart attack $12,000 $4,000 Prevent Chronic Renal Failure $8,044 $14,000 $2,000 198 96 1,999 267 1,089 127 4 21 29 49 664 91 263 90 3,411 667 $- Compliant Non-Compliant This exhibit excludes high cost claimants. PMPY costs include co morbidities. Only members with at least one chronic condition are included. 19 Cost Adjustment 1In the ACCRA Cost of Living Index, health care costs in Alaska’s cities (Fairbanks, Anchorage and Juneau ranged from 39.4% to 49.8% more costly than the average U.S. city in 2011 The Norm has not been adjusted for the higher costs in Alaska Analysis Summary will compare UA costs to adjusted norm of norm plus 42.0% 1http://labor.alaska.gov/research/col/col.pdf 20 Asthma Summary & Observations Asthma Prevalence is above the norm with UA costs of $6,161 per member per year (pmpy) compared to the adjusted norm of $6,552 pmpy 67% of the members with asthma are compliant in medication and doctor visits, decreased from 80% in the InfoLock report for 7/10 to 6/11 Patients with more than one asthma-related emergency room visit is higher than the norm 20.5% of members with Asthma are without inhaled corticosteroids or leukotriene inhibitors compared to the norm of 29.5% without inhalers Recommendation: Alere send communications and out-reach to members with emergency room visits for Asthma Provide information on free generic program if actively engaged in Alere DM Asthma program 21 COPD Summary & Observations COPD (Chronic Obstructive Pulmonary Disease) Prevalence is below the norm with UA costs of $8,202 pmpy compared to the adjusted norm of $13,127 pmpy 80% of the members with COPD are non-compliant due to lack of doctor visits and increased ER visits 43% have three or more co-morbidities The percentage of hospitalizations due to COPD increased from 2.8% to 10.0% The number of members with COPD with an ER visit was above the norm The most common cause of COPD is smoking. The condition is associated with significant lost work time and high health costs. It is progressive and remains the fourth leading cause of death in the U.S. and there is no cure. Treatment is aimed at managing exacerbations of the disease. The most important step in treatment is to encourage those who are still smoking to stop. This can be aided by implementing a smoking cessation program that combines behavioral modification with medication. 22 CAD Summary & Observations CAD (Coronary Artery Disease) Prevalence is below the norm with UA costs of $9,073 pmpy compared to the adjusted norm of $13,801 pmpy High Risk members make up 34% of the group High Cost Claimants make up 26% of the group 40% have 3 or more co-morbidities Patients with obesity are above the norm There was significant non-compliance with only 35% of members being compliant CAD can be minimized or ameliorated by implementing healthy lifestyle habits that include regular exercise, a healthy diet, and successful work-life balance. Medications also play a significant role, so compliance with a medication regimen is important 23 Depression Summary & Observations Depression Prevalence is significantly above the norm and UA costs are $5,957 pmpy compared to the adjusted norm of $7,932 pmpy Employees make up 57% of the depressed population Back and Neck pain are the top two co-morbidities There is a high compliance rate of 87% Lower than the norm for hospitalization and depression-related ER visits Patients without an office visit in the last 12 months is above the norm Several studies indicate that regular sleep and exercise, combined with a strong social network can reduce the incidence and severity of depression and also reduce the need for medication. 24 Diabetes Summary & Observations Diabetes Prevalence is above the norm with UA costs of $8,542 pmpy compared to the adjusted norm of $9,895 pmpy 84% of the population is non-compliant There is significant non-compliance in this population with 57% in the moderate and high risk category and 11% are High Cost Claimants There were no patients with a diabetes-related ER visit Obesity is an issue within the University as the percent of the diabetic population that is obese is greater than the norm (4.3% to 2.0%) Continue to promote Disease Management, IHP and vision exams Promote biometric screenings to keep pre-diabetic from becoming diabetic 25 Hyperlipidemia Summary & Observations Hyperlipidemia (High Cholesterol) Lower prevalence to the norm with UA costs of $5,808 pmpy compared to the adjusted norm of $7,235 64% of the population are employees 22% of the population is high risk but has a significant compliance rate of 80% 26 Hypertension Summary & Observations Hypertension Prevalence is lower the norm and UA costs of $5,910 pmpy compared to the adjusted norm of $7,542 pmpy 23% of the population is high risk but with a high compliance rate of 72% Hypertension related ER visits are in line with the norm 27 Cancer & Screenings Summary & Observations Malignant Neoplasms & Cancer Screenings Cancer screenings (e.g. colonoscopy) are better than the norm 56% of the cancers as a percentage of total paid for cancer are early-identifiable cancers such as breast and colon Recommendation: Continue communication to all members that there is no cost for preventive care and screenings 28 Malignant Neoplasms/ Cancer Screenings Top 5 Malignant Neoplasms Diagnoses by Paid Amount Jul 11 - Jun 12 Cancer Screenings 60% 50% 33% 24% Breast Cancer 9% 10% 37% 34% 30% 20% Misc Cancers 9% 50% 44% 45% 40% Colorectal Cancer 15% 54% Secondary Malignancy 10% 0% Prostate Cancer Women >49 y/o with mammogram in last 12 months All Others Women>20 y/o with Patients >49 y/o with pap smear in the last any colorectal cancer two years screening in the analysis period Actual Norm Early-Identifiable Cancers as a % of Total Paid 15% 44% 56% 5% 24% 9% 3% Non-Early Identifiable Colorectal Cancer Prostate Cancer Breast Cancer Female Genital Organ Cancer Skin Cancer Norm from Lockton InfoLock Book of Business. 29 Back & Neck Pain Summary & Observations Back & Neck Pain 57% of the members with back pain were employees 18% of the members with back pain are categorized as high risk Approximately 53% of back pain members had associated neck pain Significantly higher utilization of chiropractic and physical therapy care compared to the norm Chiropractic visits/1,000 are 633 compared to the norm of 383 Physical Therapy visits/1,000 are 790 compared to the norm of 341 MRI Scans and CT Scans are below the norm on visits/1,000 Paid per visit for CT Scans are at the adjusted norm Paid per visit for MRI Scans are significantly above the norm 30 Musculoskeletal Back Pain, Neck Pain, and Intervertebral Disc Disorders Utilization Primary Procedure Group Visits Physical Therapy Neurosurgery MRI Scan Orthopedic Surgery, exclude endoscopic Chiropractic Neurology Other Anesthesia Office Visit - Established Patient Durable Medical Equipment Rehab X-ray Other Procedures All Others Total 6,274 19 162 5 4,411 76 66 914 45 580 259 341 493 13,645 $888,929 $403,229 $264,689 $219,657 $176,070 $140,148 $117,780 $109,436 $109,374 $69,186 $49,157 $42,375 $184,756 2,774,786 Jul 11 - Jun 12 Category Chiropractic Physical Therapy CT Scan MRI Scan Avg Paid Per Visit Paid Visits/1000 Paid/Visit 633.0 790.1 2.0 15.5 $38 $95 $793 $1,526 Norm from Lockton InfoLock Book of Business. $142 $21,223 $1,634 $43,931 $40 $1,844 $1,785 $120 $2,431 $119 $190 $124 $375 $203 Norm Visits/1000 Paid/Visit 383.3 340.9 4.7 29.1 $17 $34 $566 $752 31 Osteoarthritis Summary & Observations Osteoarthritis Prevalence is above the norm and UA costs of $9,253 pmpy compared to the adjusted norm of $12,573 pmpy 60% of the members with osteoarthritis were employees 33% of the members with osteoarthritis are categorized as high risk 21% of the members with osteoarthritis 73% of the members are compliant 32 Pregnancy & Neonates Summary & Observations Pregnancy Per capita pregnancy inpatient costs increased 6.1% from $10,939 to $11,612 Pregnant women delivering with fewer than 6 prenatal visits is significantly worse than the norm 83.7% of the pregnant women in the UA population had less than 6 prenatal visits 20.8% of pregnant women had a pregnancy related ER visit which is above the norm Neonates Per capita inpatient neonate costs decreased 5% from $4,329 to $4,158 33 Recommendations Medical Emergency Room - Specific communication on using alternative care setting for non-emergent care Depression – communication campaign on how to reduce depression and use of EAP services Neonates – provide communication on importance of prenatal vitamins and visits Communicate to employees no cost preventive care and screenings Explore patient advocacy and transparency vendor to assist members in choosing the lowest cost service provider/facility Pharmacy Covering generic only PPIs – was not supported by JHCC for FY 2012 Continue generic usage communication to members and enrollment in disease management programs 34 Current Member Risk Analysis • • Members included in this section were active plan participants as of the last month of the reporting cycle and enrolled for more than three months. Retirees and COBRA members are excluded from this section. Each individual member is assigned a relative risk score indicating disease burden and a care gap score quantifying appropriate medical care. Depending upon the prevalence of disease and the extent of gaps in medical care, the population is stratified into low, moderate, and high risk for disease burden, and compliant or non-compliant for disease management. Population Risk High Risk members made up 9.3% (878) of the population and accounted for 25.1% of the costs High Risk - Non-Compliant members on average cost $838* more per year than Compliant members Moderate Risk members made up 12.5% (1176) of the population and accounted for 15.7% of the costs Moderate Risk - Non-Compliant members on average cost $439* more per year than Compliant members Low Risk members made up 75.4% of the population and accounted for 19.4% of the costs Top 5 Chronic conditions are back pain, neck pain, hypertension, depression, and hyperliperdemia *Norm from the Lockton InfoLock Book of Business. 36 Claims Based Population Stratification High Cost Non-Compliant 367 members $10,092 PMPY PRIORITY 269 members $62,017 PMPY Goal Intervention Manage high costs Help members navigate system Case Management Close gaps in care Steerage Disease Management and Health Promotion High Risk 197 members $13,027 PMPY Moderate Risk 170 members $6,691 PMPY Population 9,440 members $5,144 PMPY High Risk Compliant 1,687 members $8,648 PMPY 681 members $12,189 PMPY Moderate Risk 1,006 members $6,252 PMPY Low Risk 7,117 members $1,356 PMPY DxCG Risk Model 18 Manage risk factors Reinforce and monitor compliance rates Manage risk factors Health Promotion Health Promotion 37 Utilization Metrics by Claims Based Population Risk Current Year Metrics Number of members Low Risk Moderate Risk High Risk 7,117 1,176 878 % of members with no claims 20.3% 0.6% 0.0% % of members with no medical claims 23.4% 0.6% 0.1% % of members with no Rx claims 49.4% 17.7% 13.3% 82 257 493 Office Visits/1000 3,548 11,894 14,955 Prescriptions/1000 4,251 14,097 19,997 Adult Preventive Exam 27.7% 38.9% 35.7% Well Child Exam 44.3% 64.8% 58.8% Mammogram 41.8% 47.7% 57.1% Pap Smear 50.1% 58.8% 59.0% Colorectal Screening 27.8% 46.6% 45.4% Utilization Metrics ER Visits/1000 Preventive Care 38 Appendix Demographics – Total Members Jul 10 Jun 11 Average Number of Members Total Number of Members Member Months Employee Months Age Gender Factor Employee Age Gender Factor Spouse Age Gender Factor Dependent Age Gender Factor Member to Employee Ratio Average Age % Female % Female in child bearing years 9,723 10,594 116,678 51,902 1.14 1.36 1.40 0.56 2.27 36.7 52.6% 38.3% Norm from Lockton InfoLock Book of Business. Jul 11 Jun 12 9,341 10,975 112,099 56,242 1.13 1.37 1.42 0.56 2.32 36.4 52.4% 41.1% Norm 1.01 1.17 1.34 0.61 2.23 33.4 50% 43% 40 Demographics - Total Members Employees Average Age % Female Average RRS Average RCGI 47 56% 1.27 1.54 Employee Norm 44 40% 1.16 1.17 Spouses 48 49% 1.31 1.74 Spouse Norm 46 72% 1.55 1.36 Dependent Norm Dependents 14 50% 0.50 0.61 13 49% 0.51 0.59 Overall Overall Population Population Norm 36 52% 1.03 1.29 33 50% 1.00 1.00 Routine Care Gap Index- RCGI Relative Risk Score- RRS Norm from Lockton InfoLock Book of Business. 41 Demographics – Current Year Total Members Age Category 0-1 0-1 2-19 2-19 20-29 20-29 30-39 30-39 40-49 40-49 50-59 50-59 60-64 60-64 65+ 65+ Total Gender Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male # of Members # of Employees # of Spouses # of Deps % of Norm % of Members Members 111 116 1,202 1,233 835 702 932 733 1,000 832 1,135 953 356 393 185 257 1 2 272 188 602 469 645 524 773 546 239 213 131 119 110 71 329 264 355 307 362 407 117 180 54 138 111 116 1,201 1,231 453 443 1 1 - 1% 1% 11% 11% 8% 6% 8% 7% 9% 8% 10% 9% 3% 4% 2% 2% 1% 1% 13% 14% 8% 8% 8% 8% 8% 8% 7% 8% 2% 2% 1% 2% 10,975 4,724 2,694 3,557 100% 100% Norm from Lockton InfoLock Book of Business. 42 Financial Summary Jul 10 - Jun 11 Jul 11 - Jun 12 % Change Norm Allowed Amount $60,584,676 $56,218,526 -7.2% Plan Paid $55,539,478 $45,259,136 -18.5% Plan Paid PMPM $476.01 $351.55 -26.1% $255.98 Plan Paid PEPM $1,070.08 $804.72 -24.8% $569.85 Allowed Amount $8,568,068 $8,691,083 1.4% Plan Paid $7,403,967 $7,519,038 1.6% Plan Paid PMPM $63.46 $58.40 -8.0% $55.89 Plan Paid PEPM $142.65 $133.69 -6.3% $124.42 $69,152,744 $64,909,609 -6.1% $6,162,889 $12,081,381 96.0% $62,943,445 $52,778,174 -16.1% Plan Paid PMPM $539.46 $409.95 -24.0% $311.87 Plan Paid PEPM $1,212.74 $938.41 -22.6% $694.27 $197.26 $141.01 -28.5% $88.96 $8.67 $9.33 7.6% $7.79 % Pharmacy of Total Paid Medical Costs 2010-2011 11.8% 2011-2012 14.2% Rx Costs Norm 0.0% Employee Paid Plan Paid 10.0% 20.0% % Employee Paid Total Costs Allowed Amount 17.9% 2010-2011 8.9% 2011-2012 18.6% High Cost Claimants (>50,000 in claims) Medical PMPM Rx PMPM Norm 0.0% Norm from Lockton InfoLock Book of Business. 16.5% 10.0% 20.0% 43 Utilization Summary Apr 10 Mar 11 Place of Service Allowed PMPM Apr 11 Mar 12 % Change Norm Inpatient Hospital $134.04 $103.17 -23.0% $90.55 Outpatient Hospital $145.93 $135.89 -6.9% $94.99 Office $169.16 $153.60 -9.2% $71.98 $38.58 $35.71 -7.4% $28.17 $0.21 $0.13 -37.4% $13.64 Inpatient Hospital $131.16 $92.67 -29.3% $83.97 Outpatient Hospital $136.80 $116.60 -14.8% $80.82 Office $143.86 $113.23 -21.3% $55.34 $35.30 $29.62 -16.1% $22.00 $0.16 $0.09 -47.3% $11.15 Emergency Room Other Place of Service Paid PMPM Emergency Room Other Current Incurred Year Allowed by Place of Service 8% 0% Current Incurred Year Employee Paid by Place of Service 35% 24% 36% 30% Inpatient Hospital 25% Outpatient Hospital 20% Office 15% Emergency Room Other 32% 32% 26% 17% 14% 10% 10% 5% 0% Inpatient Hospital Outpatient Hospital Office Emergency Room Other 44 Emergency Room Demographics Current Year ER Visits by Age and Gender 400 342 339 350 278 300 250 212 200 150 101 100 100 50 32 34 F M 159 132 74 63 F M 97 90 0 0-2 F M 3-12 13-18 F M 19-26 F M 27-39 F M 40-60 F M 60+ 45 Prescription Drug Changes Top 20 Drugs with Script Count Decreases LIPITOR 1344 FEXOFENADINE HCL 508 NEXIUM 421 LEXAPRO 419 Top 20 Drugs with Script Count Increases -60% ATORVASTATIN CALCIUM -92% ESCITALOPRAM OXALATE -38% LEVOFLOXACIN 205 4100% -39% VIAGRA 175 875% 863 NA 287 NA LEVAQUIN 278 -99% METHYLPHENIDATE ER 150 1154% AZITHROMYCIN 277 -22% CIALIS 128 2560% HYDROCODONE-… 265 -11% LATANOPROST 108 300% HYDROCHLOROTHIAZIDE 239 -18% LOSARTAN POTASSIUM 102 20% SIMVASTATIN 232 -18% ZOLPIDEM TARTRATE ER 91 47% CRESTOR 213 -25% PORTIA 88 4400% LEVOTHYROXINE SODIUM 186 -15% CITALOPRAM HBR 86 21% EFFEXOR XR 186 -93% AVIANE 79 46% AMBIEN CR 176 -97% FLUORIDE 74 NA AVAPRO 140 -63% DEXTROAMPHETAMINE- … 69 37% CONCERTA 134 -89% NOVOLOG 65 86% LISINOPRIL-… 130 -17% PREDNISONE 62 12% SULFAMETHOXAZOLE-… 127 -24% METHYLPHENIDATE HCL 61 469% ADVAIR DISKUS 127 -22% FLUVIRIN 2011-2012 56 NA NASACORT AQ 127 -97% JUNEL 55 344% AVALIDE 125 -99% AMPHETAMINE SALT COMBO 54 31% -1500 Brand -1000 Generic -500 0 0 Brand 200 400 600 800 1000 Generic 46 Prescription Drugs - Top 20 Therapeutic Classes Current Year Top 20 Therapeutic Classes by Plan Paid Amount HMG-CoA Reductase Inhibitors $468,613 Disease-modifying Antirheumatic Agents $388,986 Biologic Response Modifiers $377,059 Proton-pump Inhibitors $326,666 Insulins $256,683 Antineoplastic Agents $248,186 Atypical Antipsychotics $224,020 Selective beta-2-Adrenergic Agonists $204,167 Selective Serotonin- and Norepinephrine-… $203,045 Leukotriene Modifiers $194,218 Adrenals $193,974 Skin and Mucous Membrane Agents, Misc $188,014 Angiotensin II Receptor Antagonists $181,301 Selective Serotonin-reuptake Inhibitors $166,085 Opiate Agonists $149,111 Anticonvulsants, Miscellaneous $145,021 Anti-inflammatory Agents $134,425 Contraceptives $130,387 Amphetamines $121,624 Nucleosides and Nucleotides $118,602 $0 Brand $100,000 $200,000 $300,000 $400,000 $500,000 Generic 47 Prescription Drugs - Top 20 Therapeutic Classes Jul 10 - Jun 11 Therapeutic Class HMG-CoA Reductase Inhibitors Disease-modifying Antirheumatic Agents Biologic Response Modifiers Proton-pump Inhibitors Insulins Antineoplastic Agents Atypical Antipsychotics Selective beta-2-Adrenergic Agonists Selective Serotonin- and Norepinephrine-reuptake Inhibitors Leukotriene Modifiers Adrenals Skin and Mucous Membrane Agents, Misc Angiotensin II Receptor Antagonists Selective Serotonin-reuptake Inhibitors Opiate Agonists Anticonvulsants, Miscellaneous Anti-inflammatory Agents Contraceptives Amphetamines Nucleosides and Nucleotides Top 20 Therapeutic Classes All Others Total Paid $529,125 $397,596 $401,481 $426,119 $234,829 $122,321 $198,498 $211,190 $224,390 $153,735 $163,146 $145,546 $187,590 $165,589 $140,868 $150,968 $97,084 $139,410 $65,657 $120,795 $4,275,935 $3,128,031 $7,403,967 Paid PMPM $4.53 $3.41 $3.44 $3.65 $2.01 $1.05 $1.70 $1.81 $1.92 $1.32 $1.40 $1.25 $1.61 $1.42 $1.21 $1.29 $0.83 $1.19 $0.56 $1.04 $36.65 $26.81 $63.46 Scripts 5,048 211 134 3,273 800 503 569 2,134 1,506 1,012 1,646 588 2,195 3,437 5,216 1,516 1,165 4,288 561 973 36,775 54,840 91,615 Jul 11 - Jun 12 Cost per Script $105 $1,884 $2,996 $130 $294 $243 $349 $99 $149 $152 $99 $248 $85 $48 $27 $100 $83 $33 $117 $124 $116 $57 $81 Paid $468,613 $388,986 $377,059 $326,666 $256,683 $248,186 $224,020 $204,167 $203,045 $194,218 $193,974 $188,014 $181,301 $166,085 $149,111 $145,021 $134,425 $130,387 $121,624 $118,602 $4,420,189 $3,098,850 $7,519,038 Paid PMPM $3.64 $3.02 $2.93 $2.54 $1.99 $1.93 $1.74 $1.59 $1.58 $1.51 $1.51 $1.46 $1.41 $1.29 $1.16 $1.13 $1.04 $1.01 $0.94 $0.92 $34.33 $24.07 $58.40 Scripts 4,087 200 107 2,576 818 546 577 1,911 1,257 980 1,597 603 1,883 3,400 4,730 1,405 1,142 4,034 765 932 33,550 48,567 82,117 Cost per Script $115 $1,945 $3,524 $127 $314 $455 $388 $107 $162 $198 $121 $312 $96 $49 $32 $103 $118 $32 $159 $127 $132 $64 $92 % Change in Paid PMPM -19.7% -11.3% -14.9% -30.5% -0.9% 83.9% 2.3% -12.4% -18.0% 14.5% 7.8% 17.1% -12.4% -9.1% -4.1% -12.9% 25.5% -15.2% 67.9% -11.0% -6.3% -10.2% -8.0% 48 Top 10 Medical Pharmacy Rx Spend - Top 10 Medical Pharmacy Drugs HUMIRA $249,762 ENBREL $101,716 NOVOLOG $46,673 AVONEX $46,446 HUMALOG $38,559 TEMODAR $37,120 AVONEX … $32,978 PULMOZYME $25,812 REMICADE $21,683 XELODA $12,850 $0 $100,000 $200,000 $300,000 49 Prescription Drugs - High Cost Scripts (>$1,000) Number of High Cost Scripts 800 700 692 PMPM Paid for High Cost Scripts $14 640 600 $12 $11.39 $11.77 2010-2011 2011-2012 $10 500 $8 400 $6 300 200 $4 100 $2 0 $0 2010-2011 2011-2012 Year 1 Rx PMPM Paid Year 2 Rx PMPM Paid $11.39 18% $46.63 80% $52.07 82% High Cost Scripts PMPM $11.77 20% All Other PMPM High Cost Scripts PMPM All Other PMPM 50 Anti-Hyperlipidemics Generic Analysis HMG-CoA Reductase Inhibitors Jul 10 - Jun 11 Plan Paid PMPM Statins Lipitor Crestor Lescol XL Simvastatin Lovastatin Pravastatin Sodium Jul 11 - Jun 12 % Change $4.53 $3.64 Jul 10 - Jun 11 Script Rx Count PMPM 2,257 855 1,269 81 437 $2.89 $1.05 $0.00 $0.35 $0.01 $0.09 -19.7% Jul 11 - Jun 12 Script Rx % Change Count PMPM 913 642 1,037 75 410 $1.26 $0.91 $0.00 $0.36 $0.01 $0.09 -56.3% -13.5% 0.0% 3.2% 60.4% 1.3% Potential Savings If 50% of scripts for: Lipitor, Crestor, and Lescol XL moved to Simvastatin last year costs would have been reduced by approximately: $95,313 51 Peptic Ulcer Generic Analysis 75% of members with a Proton-Pump inhibitor script had no peptic ulcer claims in the current year compared to a norm of 76%. Proton-pump Inhibitors Jul 10 - Jun 11 Plan Paid PMPM Peptic Ulcer Prevacid Nexium Aciphex Protonix Kapidex Prilosec Axid Zantac Pantoprazole Sodium Lansoprazole Omeprazole Ranitidine HCL Cimetidine Famotidine Jul 11 - Jun 12 % Change $3.65 $2.54 Jul 10 - Jun 11 Script Rx Count PMPM 21 1101 53 2 0 2 0 0 501 450 1023 224 28 59 $0.05 $2.20 $0.12 $0.00 $0.00 $0.00 $0.00 $0.00 $0.36 $0.39 $0.37 $0.02 $0.00 $0.03 -30.5% Jul 11 - Jun 12 Script Rx % Change Count PMPM 11 680 30 0 0 0 0 0 378 391 987 193 9 60 $0.02 $1.39 $0.08 $0.00 $0.00 $0.00 $0.00 $0.00 $0.20 $0.32 $0.40 $0.01 $0.00 $0.04 -55.2% -36.7% -35.8% 0.0% 0.0% -100.0% 0.0% 0.0% -44.0% -18.3% 9.1% -19.9% -31.9% 52.5% Potential Savings If 50% of scripts for: Prevacid, Nexium, Aciphex, Protonix, Kapidex, Prilosec, Axid, and Zantac moved to Omeprazole last year costs would have been reduced by approximately: $80,221 52 Asthma Members by Relationship 45% Member by Risk Category 21% 34% 56% Members by Compliance 20% 20% 67% Number of Comorbidities 42% Asthma Prevalence Employees Low Risk 3% 33% 20% 22% Spouses Moderate Risk Compliant Top 5 Co morbidities by Number of Members High Risk HCC Non-Compliant Asthma Only 2 comorbidities 16% Dependents 1 comorbidity 3+ comorbidities Asthma Members Annual Cost Excludes High Cost Claimants 300 2.5% 250 2.0% 200 1.5% 150 1.0% 100 0.5% 50 303 0.0% 0 Prevalence 114 Neck Pain 59 Depression 32 Hypertension 30 Hyperlipidemia 26 Norm 0 20 40 60 80 100 120 Norm from the Lockton InfoLock Book of Business. $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $8,498 $7,904 $5,803 $4,614 2.8% 3.0% Back Pain $6,161 350 3.2% $7,512 3.5% 2010-2011 2011-2012 Norm PMPY PMPY Plan Paid Employee Paid 53 Asthma Quality and Risk Measures Risk Measures Criteria # Description Actual % Norm % Variance Asthma 303 Patients with more than one asthma-related ER visit in the analysis period 4.3% 3.0% 1.3% Asthma 303 Patients with more than one asthma-related hospitalization in the analysis period 0.3% 0.4% -0.1% Asthma 303 Patients with asthma-related ER visit in the analysis period 10.6% 11.8% -1.3% Asthma 303 Patients with asthma-related hospitalization in the analysis period 3.0% 2.9% 0.1% Quality Care Measures Criteria Asthma-related ER visit Asthma-related admission Asthma # Description Actual % Norm % Variance 40 Patients without office visit in the analysis period 0.0% 3.2% -3.2% 9 Patients without office visit in the analysis period 0.0% 1.4% -1.4% 20.5% 29.5% -9.0% 303 Patients without inhaled corticosteroids or leukotriene inhibitors in the analysis period Norm from the Lockton InfoLock Book of Business. 54 COPD Members by Relationship 43% Member by Risk Category 30% Members by Compliance 53% 13% 40% 20% Number of Comorbidities 3% 3% Low Risk 17% 80% 27% Spouses Moderate Risk Compliant 27% Dependents High Risk HCC Non-Compliant COPD Only 2 comorbidities 43% Top 5 Co morbidities by Number of Members COPD Prevalence Employees 1 comorbidity 3+ comorbidities COPD Members Annual Cost Excludes High Cost Claimants 0.6% 30 0.5% 25 0.4% 20 0.3% 0.3% 15 0.2% 10 0.1% 5 30 0.0% 0 Prevalence Back Pain 12 Diabetes 10 Hypertension 10 Neck Pain 9 Congestive Heart Failure 6 Norm 0 5 10 15 Norm from the Lockton InfoLock Book of Business. $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 $15,390 $10,265 $11,284 $9,244 35 $8,202 0.6% $13,983 0.7% 2010-2011 2011-2012 Norm PMPY PMPY Plan Paid Employee Paid 55 COPD Quality and Risk Measures Risk Measures Criteria COPD COPD COPD COPD # 30 30 30 30 Description Patients Patients Patients Patients Actual % with COPD-related ER visit in the analysis period with more than one hospitalization in the analysis period with more than one COPD-related ER visit in the analysis period with COPD-related hospitalization in the analysis period 20.0% 20.0% 6.7% 10.0% Norm % Variance 12.4% 19.5% 3.7% 9.3% 7.6% 0.5% 3.0% 0.7% Quality Care Measures Criteria COPD-related ER visit COPD-related admission COPD # 13 3 30 Description Actual % Patients without office visit in the analysis period Patients without office visit in the analysis period COPD without Office visit in last 12 months Norm from the Lockton InfoLock Book of Business. 0.0% 0.0% 10.0% Norm % Variance 1.1% 0.9% 4.7% -1.1% -0.9% 5.3% 56 CAD Members by Relationship Member by Risk Category 55% 25% Members by Compliance Number of Comorbidities 45% 15% 34% 35% 14% Employees Low Risk 26% 65% 21% CAD Prevalence Spouses Moderate Risk Compliant 25% Top 5 Co morbidities by Number of Members High Risk HCC Non-Compliant CAD Only 2 comorbidities 40% Dependents 1 comorbidity 3+ comorbidities CAD Members Annual Cost Excludes High Cost Claimants 1.4% 1.2% 1.1% 80 1.0% $14,000 39 Back Pain $12,000 29 20 Diabetes $4,000 26 $2,000 106 0.0% 0 Prevalence $11,757 $6,000 40 0.4% $11,141 $8,000 Hyperlipidemia 0.6% $11,459 $10,000 37 60 0.8% 0.2% Hypertension Neck Pain $0 17 Norm 0 10 20 $9,719 100 $9,073 1.6% 1.6% 120 $10,222 1.8% 30 40 50 Norm from the Lockton InfoLock Book of Business. 2010-2011 2011-2012 Norm PMPY PMPY Plan Paid Employee Paid 57 CAD Quality and Risk Measures Risk Measures Criteria CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD # 106 106 106 106 106 106 106 106 106 106 106 106 Description Patients Patients Patients Patients Patients Patients Patients Patients Patients Patients Patients Patients Actual % with cardiac catheterization in the analysis period with CABG in the analysis period with cerebrovascular disease (CVD) with MI-related hospitalization in the analysis period with peripheral vascular disease (PVD) with CAD-related ER visit in the analysis period with depression with CAD-related hospitalization in the analysis period with obesity with more than one hospitalization in the analysis period with cardiac stenting in the analysis period with hyperlipidemia 43.4% 5.7% 9.4% 4.7% 3.8% 8.5% 7.5% 25.5% 1.9% 17.0% 21.7% 27.4% Norm % Variance 40.8% 5.0% 8.9% 5.5% 5.1% 16.1% 5.3% 20.1% 1.3% 16.1% 17.2% 52.6% 2.6% 0.7% 0.5% -0.8% -1.3% -7.6% 2.2% 5.4% 0.6% 0.9% 4.5% -25.3% Quality Care Measures Criteria CAD and Hypertension CAD-related ER visit CAD-related admission CAD # 39 12 27 106 Description Patients Patients Patients Patients Actual % without antihypertensive without office visit in the without office visit in the without office visit in the drugs in the analysis period analysis period analysis period last 12 months Norm from Lockton InfoLock Book of Business. 5.1% 0.0% 0.0% 12.3% Norm % Variance 5.0% 0.6% 0.5% 3.8% 0.1% -0.6% -0.5% 8.5% 58 Depression Members by Relationship 57% Member by Risk Category 25% 47% Members by Compliance 18% 24% 22% 7% 87% Number of Comorbidities 34% 13% 27% Depression Prevalence Employees 21% Low Risk Spouses Moderate Risk Compliant Top 5 Co morbidities by Number of Members High Risk HCC Non-Compliant Depression Only 2 comorbidities 19% Dependents 1 comorbidity 3+ comorbidities Depression Members Annual Cost Excludes High Cost Claimants 800 Back Pain 349 700 600 Neck Pain 212 500 3.9% 400 Hypertension 79 Headache 78 300 200 100 814 0 Prevalence Osteoarthritis 67 Norm 0 100 200 300 400 Norm from Lockton InfoLock Book of Business. $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $8,436 $7,665 $7,007 $5,586 8.6% $5,957 900 $7,505 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2010-2011 2011-2012 Norm PMPY PMPY Plan Paid Employee Paid 59 Depression Quality and Risk Measures Risk Measures Criteria Depression Depression # 814 814 Description Actual % Patients with more than one hospitalization in the analysis period Patients with depression-related ER visit in the analysis period 4.3% 3.3% Norm % Variance 7.0% 5.1% -2.7% -1.7% Quality Care Measures Criteria Depression Depression-related admission # 814 25 Description Actual % Patients without office visit in the last 12 months Patients without mental health office visit within 14 days of discharge Norm from Lockton InfoLock Book of Business. Norm % Variance 9.0% 4.3% 4.7% 24.0% 22.2% 1.8% 60 Diabetes Members by Relationship 58% Member by Risk Category Members by Compliance 33% 37% 30% 27% 16% Number of Comorbidities 5% 11% 84% 32% 21% Diabetes Prevalence Employees Low Risk Spouses Moderate Risk Compliant 20% Top 5 Co morbidities by Number of Members High Risk HCC Non-Compliant Diabetes Only 2 comorbidities 28% Dependents 1 comorbidity 3+ comorbidities Diabetes Members Annual Cost Excludes High Cost Claimants 440 Prevalence Back Pain 163 $14,000 $12,000 Hypertension 119 Neck Pain 82 Hyperlipidemia 81 $6,000 $4,000 $0 Norm 50 $8,572 $8,000 55 0 $10,522 $10,000 $2,000 Osteoarthritis $11,628 $6,968 4.5% 500 450 400 350 300 250 200 150 100 50 0 $8,542 4.7% $10,385 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 100 150 200 Norm from Lockton InfoLock Book of Business. 2010-2011 2011-2012 Norm PMPY PMPY Plan Paid Employee Paid 61 Diabetes Quality and Risk Measures Risk Measures Criteria Diabetes-related admission Diabetes Diabetes Diabetes Diabetes Diabetes Diabetes Diabetes Diabetes Diabetes Diabetes-related ER visit Diabetes Diabetes Diabetes # 8 440 440 440 440 440 440 440 440 440 20 440 440 440 Description Patients Patients Patients Patients Patients Patients Patients Patients Patients Patients Patients Patients Patients Patients Actual % without diabetes-related office visit in the analysis period with dialysis in the analysis period with diabetes-related hospitalization in the analysis period with ulcer or open wound with CAD with obesity with hyperlipidemia with hypertension or taking antihypertensive drugs with peripheral vascular disease (PVD) with retinopathy without office visit in the analysis period with diabetes-related ER visit in the analysis period with renal failure with more than one hospitalization in the analysis period 0.0% 0.9% 1.8% 9.5% 5.9% 4.3% 18.4% 64.8% 0.9% 2.0% 0.0% 3.9% 3.9% 5.5% Norm % Variance 7.5% 2.1% 2.3% 8.1% 10.5% 2.0% 35.1% 73.8% 1.8% 2.8% 1.3% 4.4% 4.0% 7.5% -7.5% -1.2% -0.5% 1.4% -4.6% 2.3% -16.7% -9.0% -0.8% -0.7% -1.3% -0.6% -0.2% -2.0% Quality Care Measures Criteria # Diabetes Diabetes Diabetes Diabetes Diabetes Diabetes Diabetes Diabetes 440 440 392 392 440 440 440 392 Description Actual % Patients without micro or macroalbumin screening test in the last 12 months Patients without semiannual HbA1c test Diabetes without Office Visit in Analysis Period Diabetes without Lab Test in Analysis Period Patients without HbA1c test in the last 12 months Patients without claims for home glucose testing supplies in the last 12 months Patients without retinal eye exam in the last 12 months Diabetes without Lab Test in Last 12 Months Norm from Lockton InfoLock Book of Business. 45.5% 87.7% 0.3% 1.3% 28.6% 54.5% 83.0% 16.3% Norm % Variance 40.8% 87.8% 0.8% 1.8% 25.3% 48.9% 75.3% 9.2% 4.6% -0.1% -0.5% -0.6% 3.3% 5.6% 7.7% 7.1% 62 Hyperlipidemia Members by Relationship 64% Member by Risk Category 35% 46% Members by Compliance 25% 22% 80% Number of Comorbidities 26% 22% Employees Low Risk 7% 20% 29% Hyperlipidemia Prevalence 1% Spouses Moderate Risk Compliant Top 5 Co morbidities by Number of Members High Risk HCC Non-Compliant Hyperlipidemia Only 2 comorbidities 23% Dependents 1 comorbidity 3+ comorbidities Hyperlipidemia Members Annual Cost Excludes High Cost Claimants Back Pain 277 600 500 Hypertension 190 400 300 Neck Pain 155 200 100 697 Osteoarthritis 84 Diabetes 81 0 Prevalence Norm $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $7,952 $6,366 2010-2011 2011-2012 PMPY PMPY Plan Paid 0 100 $7,514 200 $5,095 7.4% 700 $5,808 8.6% 800 $6,927 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Norm Employee Paid 300 Norm from Lockton InfoLock Book of Business. 63 Hypertension Members by Relationship 63% Member by Risk Category 36% 46% Members by Compliance 23% 23% 72% Number of Comorbidities 32% 18% Employees Low Risk 9% 28% 26% Hypertension Prevalence 1% Compliant Spouses Moderate Risk Top 5 Co morbidities by Number of Members High Risk HCC Non-Compliant Hypertension Only 2 comorbidities 24% Dependents 1 comorbidity 3+ comorbidities Hypertension Members Annual Cost Excludes High Cost Claimants 8.7% Back Pain $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 299 700 8.0% 600 Hyperlipidemia 190 500 6.0% 400 4.0% 2.0% 800 Neck Pain 152 300 200 825 100 824 0.0% 0 Prevalence Norm Osteoarthritis 121 Diabetes 119 0 100 200 $8,111 $7,602 $6,637 2010-2011 2011-2012 PMPY PMPY 300 400 Norm from Lockton InfoLock Book of Business. Plan Paid $5,311 9.9% $5,910 10.0% 900 $7,111 12.0% Norm Employee Paid 64 Hypertension Quality and Risk Measures Risk Measures Criteria Hypertension Hypertension Hypertension # 825 825 825 Description Actual % Hypertension Related ER Visit in Analysis Period Hypertension Related Hospitalization Patients with more than one hospitalization in the analysis period 33.5% 0.1% 3.3% Norm % Variance 37.6% 0.6% 5.8% -4.2% -0.5% -2.5% Quality Care Measures Criteria Hypertension-related ER visit Hypertension-related admission Hypertension Hypertension # Description Actual % Norm % Variance 21 Patients without office visit in the analysis period 0.0% 2.2% -2.2% 1 825 825 Patients without office visit in the analysis period Patients without office visit in the last 12 months Patients without office visit in the analysis period 0.0% 8.8% 0.2% 1.0% 4.8% 0.6% -1.0% 4.0% -0.3% Norm from Lockton InfoLock Book of Business. 65 Musculoskeletal Back Pain Members by Relationship 57% Member by Risk Category 31% 54% Members by Compliance 22% 12% 18% 87% Number of Comorbidities 24% 38% Back Pain Prevalence 22% 6% Employees Low Risk Spouses Moderate Risk 13% Compliant 16% Back Pain Only 2 comorbidities Top 5 Co morbidities by Number of Members Dependents High Risk HCC Non-Compliant 1 comorbidity 3+ comorbidities Back Pain Members Annual Cost Excludes High Cost Claimants 2500 20.0% 2000 15.0% 1500 11.9% 10.0% 1000 5.0% 500 2405 0.0% Neck Pain 1263 Depression 349 Hypertension 299 Hyperlipidemia 277 Osteoarthritis 249 0 Prevalence Norm 0 500 1000 1500 Norm from the Lockton InfoLock Book of Business. $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $7,885 $7,085 $6,457 $5,141 25.5% 25.0% $5,443 3000 $6,975 30.0% 2010-2011 2011-2012 Norm PMPY PMPY Plan Paid Employee Paid 66 Musculoskeletal Back Pain Quality and Risk Measures Risk Measures Criteria Back Pain Back Pain Back Pain # 2,405 2,405 2,405 Description Actual % Back Pain Related Hospitalization in Analysis Period Back Pain Related ER Visit in Analysis Period Back Pain with >1 Hospitalizations in Analysis Period 0.6% 31.9% 1.9% Norm % Variance 1.1% 39.8% 4.3% -0.5% -8.0% -2.5% Quality Care Measures Criteria Back Pain-related ER visit # 122 Description Actual % Patients without office visit in the analysis period Norm from the Lockton InfoLock Book of Business. 3.3% Norm % Variance 4.7% -1.4% 67 Musculoskeletal Neck Pain Members by Relationship 58% Member by Risk Category 30% 50% Members by Compliance 23% 12% 20% 87% Number of Comorbidities 1% 13% 46% Neck Pain Prevalence 7% 29% Employees Low Risk Spouses Moderate Risk Compliant Top 5 Co morbidities by Number of Members High Risk HCC Non-Compliant Neck Pain Only 2 comorbidities 23% Dependents 1 comorbidity 3+ comorbidities Neck Pain Members Annual Cost Excludes High Cost Claimants 1200 12.0% 1000 10.0% Back Pain 1263 Depression 212 800 8.0% 5.3% 6.0% 600 4.0% 400 2.0% 200 1303 0.0% 0 Prevalence Hyperlipidemia 155 Hypertension 152 Osteoarthritis 135 Norm 0 500 1000 1500 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $8,541 $6,613 2010-2011 2011-2012 PMPY PMPY Plan Paid Norm from the Lockton InfoLock Book of Business. $7,766 $5,261 13.8% $6,033 14.0% 1400 $7,574 16.0% Norm Employee Paid 68 Musculoskeletal Osteoarthritis Members by Relationship 60% Member by Risk Category 25% 22% Members by Compliance 18% 22% Low Risk 21% 27% 28% Employees Spouses Moderate Risk Compliant Top 5 Co morbidities by Number of Members High Risk HCC Non-Compliant Osteoarthritis Only 2 comorbidities 32% Dependents 1 comorbidity 3+ comorbidities Osteoarthritis Members Annual Cost Excludes High Cost Claimants 445 Back Pain 249 $14,000 $12,088 $12,000 Neck Pain $11,634 $10,741 $10,000 135 $8,000 Hypertension 121 Hyperlipidemia $6,000 $4,000 84 $2,000 Depression $0 67 Norm 0 100 $8,854 3.1% 500 450 400 350 300 250 200 150 100 50 0 $9,253 4.7% Prevalence 33% 73% Osteoarthritis Prevalence 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 1% $10,880 Number of Comorbidities 39% 200 300 Norm from Lockton InfoLock Book of Business. 2010-2011 2011-2012 Norm PMPY PMPY Plan Paid Employee Paid 69 Musculoskeletal Osteoarthritis Quality and Risk Measures Risk Measures Criteria Osteoarthritis Osteoarthritis Osteoarthritis Osteoarthritis # 445 445 445 445 Description Actual % Patients with continuous use of opiates across the last 12 months Osteoarthritis Related ER Visit in Analysis Period Osteoarthritis with >1 Hospitalizations in Analysis Period Osteoarthritis Related Hospitalization in Analysis Period 8.1% 37.5% 5.8% 17.5% Norm % Variance 12.4% 43.6% 9.8% 11.9% -4.3% -6.1% -3.9% 5.6% Quality Care Measures Criteria Osteoarthritis-related ER visit Osteoarthritis-related admission # Description Actual % 0 Patients without office visit in the analysis period 0.0% 1.0% -1.0% 78 Patients without office visit in the analysis period 0.0% 0.1% -0.1% Norm from Lockton InfoLock Book of Business. Norm % Variance 70 Pregnancy Pregnancy Related Claimants of Total Childbearing Aged Females Pregnancy Related Cost 120 $1,400,000 2,151 Child Bearing Age - No Pregnancy Claims 80 $800,000 60 $600,000 31 $400,000 $68,431 31 20 $80,553 0 $2010-2011 2011-2012 2010-2011 2011-2012 Pregnancy Claimants - Spouse 52 40 $200,000 Pregnancy Claimants - Employee 99 100 $1,083,014 $1,000,000 94 108 $1,254,113 $1,200,000 137 Pregnancy Related Claimants Pregnancy Claimants - Dependent ER Cost 2010-2011 2011-2012 2010-2011 2011-2012 ER Claimants Inpatient Cost Risk Measures Inpatient Claimants Pregnancy as a % of Total Paid Description # Actual % Pregnant women delivered with fewer than six prenatal visits 307 83.7% Norm %Variance 28.8% 54.9% Quality Care Measures Description # Actual % Women with hospitalization for pregnancy-related diagnosis other than delivery Women with pregnancy-related ER visit in the analysis period Actual 4.6% Norm 4.7% Norm %Variance 307 5.2% 5.2% 0.0% 307 20.8% 18.8% 2.0% Norm from Lockton InfoLock Book of Business. 0% 50% All Others 100% 71 Neonates Neonates as a % of Total Paid Neonates Related Cost Neonates Related Claimants 120 Actual 1.8% Norm 0.0% 4.1% 50.0% All Others Neonates 100.0% $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 103 $450,985 93 100 $386,756 80 60 40 20 $2,216 $2,232 5 0 2010-2011 2011-2012 2010-2011 2011-2012 ER Cost 6 Inpatient Cost 2010-2011 2011-2012 2010-2011 2011-2012 ER Claimants Inpatient Claimants 72 Low Risk Members Demographics Members by Gender Members by Relationship 38% 39% 50% 50% Female Employee Male Spouse Dependent 23% Members by Age Group Length of Enrollment (For Current Members) 66% 70% 30% 28% 25% 60% 50% 20% 40% 15% 17% 17% 15% 30% 20% 10% 15% 9% 13% 10% 12% 5% 0% Less than 12 months 12 - 23 months 24 - 35 months 36 months 5% 2% 2% 0% 0-1 2-19 20-29 30-39 40-49 50-59 60-64 65+ 73 Low Risk Members Chronic Conditions Number of Chronic Conditions per Member 3% Top Ten Chronic Conditions by Prevalence Back Pain 10% 18.3% Neck Pain 9.2% Depression 5.4% Hypertension 5.3% 18% Hyperlipidemia 4.5% 69% Members with 0 conditions Members with 1 condition Asthma 2.4% Diabetes 2.0% Headache 1.8% Osteoarthritis 1.5% Congenital Anomalies 0.9% Members with 2 conditions Members with 3+ conditions 74 Moderate Risk Members Demographics Members by Gender Members by Relationship 14% 42% Employee Female Spouse Male 58% 56% 30% Members by Age Group Length of Enrollment (For Current Members) 35% 90% 80% 80% 70% 31% 30% 25% 60% 20% 20% 50% 40% 13% 15% 30% 20% 10% Dependent 3% 7% 9% 5% 0% Less than 12 months 12 - 23 months 24 - 35 months 9% 10% 36 months 7% 11% 6% 2% 0% 0-1 2-19 20-29 30-39 40-49 50-59 60-64 65+ 75 Moderate Risk Members Chronic Conditions Number of Chronic Conditions per Member Top Ten Chronic Conditions by Prevalence Back Pain 22% 25% 25% Neck Pain 25.9% Depression 16.6% Hypertension 15.8% Hyperlipidemia 15.1% Diabetes 28% 44.6% Osteoarthritis Headache 11.1% 8.3% 6.6% Members with 0 conditions Members with 1 condition Asthma 5.3% Cancer 4.7% Members with 2 conditions Members with 3+ conditions 76 High Risk Members Demographics Members by Gender Members by Relationship 8% 36% Employee Female Male Spouse 35% 57% Dependent 64% Members by Age Group Length of Enrollment (For Current Members) 90% 82% 30% 80% 26% 25% 70% 20% 60% 20% 50% 40% 16% 15% 13% 12% 30% 10% 8% 10% 20% 4% 8% 7% 5% 0% Less than 12 months 12 - 23 months 24 - 35 months 36 months 4% 1% 0% 0-1 2-19 20-29 30-39 40-49 50-59 60-64 65+ 77 High Risk Members Chronic Conditions Number of Chronic Conditions per Member Top Ten Chronic Conditions by Prevalence Back Pain 50.1% 16% Neck Pain 40% 29.0% Hypertension 21.3% Depression 20.0% 22% 22% Members with 0 conditions Members with 1 condition Hyperlipidemia 17.4% Osteoarthritis 16.5% Diabetes Headache Cancer 13.6% 10.4% 9.8% Members with 2 conditions Members with 3+ conditions Asthma 6.9% 78 High Cost Claimants Demographics Members by Gender Members by Relationship 10% 40% Employee Female Male Spouse 31% 60% 59% Members by Age Group Length of Enrollment (For Current Members) 84% 90% 80% 35% 60% 25% 50% 20% 40% 17% 16% 16% 15% 30% 10% 20% 10% 29% 30% 70% Dependent 1% 5% 10% 9% 5% 0% Less than 12 months 12 - 23 months 24 - 35 months 36 months 7% 1% 3% 0% 0-1 2-19 20-29 30-39 40-49 50-59 60-64 65+ 79 High Cost Claimants Chronic Conditions Number of Chronic Conditions per Member Top Ten Chronic Conditions by Prevalence Back Pain 51.7% 3% Osteoarthritis 34.2% 23% Neck Pain 32.3% Hypertension 53% 26.4% Cancer 23.0% Depression 21.9% 21% Members with 0 conditions Members with 1 condition Members with 2 conditions Hyperlipidemia 18.2% Diabetes 17.5% Headache 11.2% CAD 10.4% Members with 3+ conditions 80 Claims Based Population Risk Risk Category Low Risk, Compliant Number of Members 2010-2011 PMPY 2011-2012 PMPY Paid PMPY Norm Member Average Average Member Distribution RRS RCGI Distribution Norm 6,850 $2,058 $1,291 $1,073 0.33 0.78 72.6% 76.2% 267 $5,303 $3,029 $2,343 0.60 5.46 2.8% 3.5% 1,006 $6,303 $6,252 $5,011 1.61 1.36 10.7% 9.2% Moderate Risk, Non-Compliant 170 $9,454 $6,691 $5,866 1.59 5.54 1.8% 1.9% High Risk, Compliant 681 $10,639 $12,189 $11,099 3.77 1.59 7.2% 6.1% High Risk, Non-Compliant 197 $15,582 $13,027 $13,593 4.45 5.56 2.1% 2.3% High Cost Claimant 269 $76,997 $62,017 $113,537 7.97 3.29 2.8% 0.9% $6,213 $5,144 $3,515 1.05 1.27 100% 100% Low Risk, Non-Compliant Moderate Risk, Compliant Total 9,440 Percent of Members compared to Percent of Cost 100% Members and Cost Compared to Norm Moderate Risk, High Risk, and High Cost members account for 25% of members and 81% of costs. HCC, 2.8% High, 9.3% Moderate, 12.5% 75% 50% HCC, 39.8% High, 25.1% Low, 75.4% Moderate, 15.7% 25% Risk Category Member Distribution Member Distribution Norm Cost Distribution Cost Distribution Norm Low Risk 75% 80% 19% 25% Moderate Risk 12% 11% 16% 17% High Risk 9% 8% 25% 29% High Cost 3% 1% 40% 29% Low, 19.4% 0% Membership Cost Norm from Lockton InfoLock Book of Business. 81 Chronic Condition Reference Asthma Asthma is quite common. It can be triggered by environmental triggers such as allergies to pets or pollens, infections, cold temperatures, stress, and sometimes exercise. It is a common reason for emergency room visits and sometimes hospital admissions. It is best managed by avoidance of triggers when possible and regular use of medication. The number one reason for poor asthma control is lack of adherence to a medication regimen that includes an inhaled steroid in addition to a bronchodilator. Educating patients about the triggers and the importance of medication compliance are key to controlling this condition. Back Pain and Neck Pain Back injury prevention programs and core strengthening programs are effective in preventing injury and getting individuals back to work. In the workplace, attention to ergonomics of workstations is important in reducing back and neck pain. Monitoring the trend in high cost radiology for back pain, and surgery for herniated discs is important to establish the need for low back pain condition management programs and pre-certification programs in high cost radiology. Evaluation along with proper treatment of back pain and neck pain should limit the early use of high cost radiology including MRI and CT scans and early back surgery for herniated discs and other back ailments. Preventive practices in postural alignment, availability of therapeutic alternative treatments such as PT, acupuncture, pain treatment, and steroid injections help promote lower cost, higher efficacy solutions. COPD The most common cause of COPD is smoking. Unfortunately about 23% of American adults still smoke. COPD commonly includes chronic emphysema and bronchitis. The condition is associated with significant lost work time and high health costs. It is progressive and remains the fourth leading cause of death in the U.S. There is no cure. Treatment is aimed at managing exacerbations of the disease. The most important step in treatment is to encourage those who are still smoking to stop. This can be aided by implementing a smoking cessation program that combines behavioral modification with medication. CAD This the most common type of chronic heart disease. It is caused by the build up of plaque in the arteries supplying oxygen and nutrients to the heart muscle. Plaque consists of a number of substances, including cholesterol, other fats, and calcium. CAD can result in chest pain (angina), heart attacks, abnormal heart rhythms, and congestive heart failure. It can be minimized or ameliorated by implementing healthy lifestyle habits that include regular exercise, a healthy diet, and successful work-life balance. Medications also play a significant role, so compliance with a medication regimen is important. Depression Depression is common, whether it is mild, moderate, or severe. It is often associated with other chronic conditions such as heart disease, diabetes, and chronic pain. It is most commonly managed with medication. These drugs are expensive so employees should be aware of several good generic antidepressants that are now available. Several studies indicate that regular sleep and exercise, combined with a strong social network can reduce the incidence and severity of depression and also reduce the need for medication. 82 Chronic Condition Reference (continued) Diabetes Type 2 diabetes continues to increase in the U.S. The prevalence is a direct result of poor lifestyle choices including inactivity and poor dietary choices that result in obesity and diabetes. This a particularly serious chronic disease because it affects so many different body systems including the heart, the eyes, the kidneys, and the blood vessels. Poorly controlled diabetes results in accelerated decline in these body systems, a decline in quality of life, and high health costs. Like many of the other chronic conditions, it is best managed by implementing healthy lifestyle habits that include regular exercise, a healthy diet, and successful work-life balance. For those with established type 2 diabetes, it is very important that regular monitoring of the condition is done in order to avoid some of the serious complications. Hyperlipidemia An abnormally elevated lipid profile is a risk factor for heart disease. The lipid profile includes measurement of cholesterol, triglycerides, and LDL and HLD cholesterol. There is a genetic component to lipid levels that can make it more challenging for some individuals to control their lipid levels. But for most people lipid levels can be managed by implementing healthy lifestyle habits that include regular exercise, a healthy diet, and successful work-life balance. But many people now are prescribed medication to help control lipids. These medications are called “statins” and a variety of medication options are now available. Hypertension High blood pressure is very common. Sometimes there is an increased risk for an individual due to genetic makeup. For most people blood pressure gradually rises with age. Hypertension is a significant risk factor for heart attack, stroke, impaired vision, kidney damage, and congestive heart failure. Hypertension can be ameliorated by implementing healthy lifestyle habits that include regular exercise, a healthy diet, and successful work-life balance. Also for many a diet low in sodium is helpful. There are many medications that can help control blood pressure. As with any treatment for chronic disease, compliance is essential for effective management. Osteoarthritis About 21 million Americans have osteoarthritis. The incidence increases with age. It is associated with a breakdown of cartilage in joints and can occur in almost any joint in the body. It most commonly occurs in the weight bearing joints of the hips, knees, and spine. Factors associated with its onset include obesity, injury, joint overuse, and heredity. Osteoarthritis generates a lot of medical expense due to the cost of pain medications, diagnostic imaging, and surgical procedures (especially of the hip and lower back). Exercise and physical therapy are important restorative and preventive measures. Weight management and good nutrition are often helpful as well. 83 Glossary Allowed Amount Total paid amount, this includes both the employee and employer paid amount. Chronic Conditions Chronic Conditions included are Asthma, Atrial Fibrillation, Back Pain, Bipolar Disorder, Cerebrovascular Disease, Chronic Obstructive Pulmonary Disease, Chronic Pancreatitis, Chronic Renal Failure, Cirrhosis, Coagulopathy, Congenital Anomalies, Congestive Heart Failure, Coronary Artery Disease (incl. MI), Cystic Fibrosis, Demyelinating Diseases, Depression, Diabetes, Eating Disorders, Headache, High Risk Pregnancy, Hyperlipidemia, Hypertension, Immune Disorders, Inflammatory Bowel Diseases, Neck Pain, Osteoarthritis, Osteomyelitis, Osteoporosis, Parkinson's Disease, Rheumatoid Arthritis, Schizophrenia, Sickle Cell Anemia, Tuberculosis Co-morbidities A medical condition that exists simultaneously with and usually independently of another medical condition. Compliant Members Members with a Care Gap Index of 4 or less. Current Members Individuals who are eligible with the plan as of the end of the reporting period. Employee Paid Employee paid consists of co-pays, coinsurances, and deductibles paid by an enrollee, the spouses, and their dependents. Employer Paid Employer paid includes total paid by the plan for enrollee, the spouses, and their dependents. Emergency Room Visit Distinct service dates for members with claims that have HCFA (Health Care Financing Administration) Place of Service code of 23. Emergency Room Visits, Potential Non Emergent – Potential non emergent ER visits are visits which based on the diagnoses potentially should have been treated in a physician’s office. These include visits for general symptoms, sinusitis, influenza, general medical examinations, etc. Full Cycle Time period that corresponds to date range of data included in the data warehouse (typically 36 months). High Cost Claimants (HCC) Claimants with plan payment of $50,000 or more during either the current or previous 12 months. High Risk Claimants Claimants with plan payment of less than $50,000 during the most recent 12 months and Relative Risk Scores predicted costs greater than $10,000. 84 Glossary (continued) Incurred Basis Claim expenses reported based on the service date. Inpatient All claims paid for hospital inpatient services base on HCFA Place of Service code 21, 51, and 61. Low Risk Claimants Claimants with plan payment of less than $50,000 during the most recent 12 months and Relative Risk Scores predicted costs less than $5,000. MDC Major Diagnostic Category Member Months Total number of members eligible for the time period. Moderate Risk Claimants Claimants with plan payment of less than $50,000 during the most recent 12 months and Relative Risk Scores predicted costs between $5,000-$9,999. Non-Compliant Members Members with a Care Gap Index of 5 or more. Norm Norms from the Lockton InfoLock Book of Business are derived from claims paid for the 12 months ending 12/31/2011 from Lockton’s Normative Database comprised of 2 million member lives from self-insured, commercial plans. Office Visit Distinct service dates for members with claims that have HCFA Place of Service code of 11. Outpatient Services which take place outside of an inpatient place of service are defined as outpatient. Paid Basis Claim expenses reported based on the date the claim was paid. PEPM Per Employee per Month. 85 Glossary (continued) High Cost Script Script with a plan paid amount of $1,000 or more. Homegrown Codes Non-standard codes found in the dataset being reported PMPM Per Member per Month. Plan Payment Plan payment includes total paid by the plan for enrollee, the spouses, and their dependents. Also referred to as Employer Paid. Quality and Risk Measures The Quality and Risk measures are designed to identify potential gaps in care and care management opportunities. Relative Care Gap Index (RCGI) The Care Gap Index (CGI) is used to determine compliance for care management. A numeric score assigned to each individual calculated by summing the weights assigned to each care gap present. Care gaps are derived from evidence-based guidelines, the primary medical literature, standard medical practice, and the Verisk Health Medical Advisory Board. The Relative Care Gap Index is the Care Gap Index / the Lockton Book of Business norm. Relative Risk Score (RRS) A Relative Risk Score (RRS) is a measure of resource use, in total cost or count of outcomes events, relative to an average person. A relative risk score of 1.00 means that the person's risk burden (and predicted cost) is equal to the mean (average) in the development sample. Predictions in the DxCG main output file are relative to an average person in the datasets used to develop the models. For example, using a commercial risk adjustment model, a person with an RRS of 1.50 is predicted to spend 50% more in resources compared to the average person in the Thomson Reuters® MarketScan based benchmark sample. Similarly, an RRS of 1.50 in an event model predicts the member will incur 50% more such events (such as hospitalizations) as the average. All DxCG risk models predict one year of risk. Therapeutic Class Grouping of drugs into categories defined by the American Hospital Formulary Service. The AHFS Pharmacologic-Therapeutic Classification was developed and is maintained by the American Society of Health-System Pharmacists. Total Members Number of unique members in the time period. Units per 1,000 The average number of units (days, members, emergency room visits, etc.) per 1,000 members per year. 86 Our Mission To be the worldwide value and service leader in insurance brokerage, employee benefits, and risk management Our Goal To be the best place to do business and to work This document contains the proprietary work product of Lockton Companies, LLC, and is provided on a confidential basis. Any reproduction, disclosure or distribution to any third party without first securing written permission from Lockton Companies, LLC is expressly prohibited. www.lockton.com © 2012 Lockton, Inc. All rights reserved. Images © 2012 Thinkstock. All rights reserved. 87